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Option 3: In-house Business Unit

This option is similar to how we currently operate, but with some significant differences to ensure the new legislative requirements can be met. As such, it is not the status quo.

Some of the key differences are:

  • Water services costs/income must be ringfenced (kept separate) from our other finances, which would require internal operational and staff changes.
  • New financial reports and statements would have to be created.
  • We’d need to develop a water services strategy, maintain separate water services accounts, and prepare an annual budget and report.
  • An economic regulator would have a say in setting water services prices and could require councils to invest in their water networks.
  • Increased oversight from national regulators - the Commerce Commission and Taumata Arowai.
  • We’d face new reporting requirements, with penalties for non-compliance.

How would it work?

Click each topic to expand
Flow chart of in-house structure

  • The Upside

    • The in-house business unit’s sole focus would be Clutha District.
    • With no significant changes to the day-to-day operational model, existing jobs could be retained.
    • We would maintain oversight and control over the work programme and investment prioritisation (subject to regulatory requirements).

  • The Downside

    • Higher water charges than a jointly owned CCO. May not be affordable in the long term.
    • Significant additional financial costs in administration and staff requirements to meet financial and regulatory obligations.
    • Would have difficulty meeting infrastructure investment needs without significantly increasing rates.
    • Unable to access enhanced financing options.
    • We would struggle to fund other important council projects because we would need to borrow heavily for water infrastructure.

    • It would be harder to attract and keep skilled workers, as the current model is less appealing to people looking for career growth.
    • Limited flexibility to control water pricing and investment decisions, under economic and environment regulation.
Click here to go straight to the feedback form and have your say!

For a full overview of each option please refer to our Consultation Document.

Extracts from the consultation document are also available here:

How do the options compare?

Levels of Service & Money Matters

How do the options compare?

Click here to see a visual guide comparing the three options.

Read more about the other options

Follow the links to find out more, then have your say.

→ Option 1 - A jointly owned Council Controlled Organisation
(our preferred option)
← Option 2 - A stand-alone Council Controlled Organisation
(a CCO set up solely by Clutha District Council)